Expected Launch of Spot Ether ETFs to Intensify Crypto Market Turmoil and Volatility

Key Points
– Spot ether exchange-traded funds (ETFs) are set to launch in the US, causing speculation about potential price fluctuations in ether compared to bitcoin.
– The price of ether has been fluctuating recently, raising questions about whether it will become more volatile than bitcoin.
– Interest in ether ETFs seems lower than it was for bitcoin ETFs, but the impact on the crypto market remains uncertain.

Prepare for a Shake-Up in the Crypto World!
Spot ether ETFs are on the horizon, and investors are bracing for possible volatility in the price of Ether when compared to Bitcoin.
Could Ether surpass Bitcoin in terms of volatility? Will its price soar or plummet? Delve into expert opinions and consider how this could affect your crypto portfolio.
Rising Ether Volatility
Since April, the 30-day implied volatility index for ether (ETH DVOL) has surged compared to bitcoin (BTC DVOL). The growing 17% spread suggests that investors are expecting more significant price swings for ether.
Ether Price Movements
As of June 19, Ethereum is trading at $3,525.26. Over the past 30 days, it has seen a 15.5% increase, with a 7-day change of +0.8% and a 24-hour change of +3.2%. Starting the year around $2,350, Ethereum surpassed $4,000 on March 11 but later experienced a decline.
It regained momentum in late May, reaching over $3,880 on May 27. Recently, its price has been fluctuating between $3,700 and $3,450.
Lessons from Bitcoin ETFs
Bitcoin ETFs, introduced in January, have attracted nearly $15 billion from investors, initially driving up BTC’s price. However, this surge has slowed down, with experts noting that most ETF inflows are from arbitrage strategies rather than outright bullish bets. This cautious approach may also apply to ether ETFs.
What Lies Ahead?
The term structure for ether suggests higher expected volatility across all time frames compared to bitcoin. Despite this, open interest in ether futures on the Chicago Mercantile Exchange remains significantly lower than in bitcoin futures—$1.6 billion versus almost $10 billion. This indicates that ether has not achieved the same level of institutional acceptance as bitcoin.
JPMorgan predicts that ether ETFs might only attract $3 billion in net inflows this year.
The launch of spot ether ETFs is expected to heighten market volatility for ether. While there is significant anticipation surrounding this development, the actual response from investors remains uncertain. Investors and market analysts are closely monitoring the impact of these ETFs on the ether market.
Also Read:
Crypto Analyst Predicts Ethereum Dominance to Exceed 20% by Year-End
Expect a bumpy ride for ether as spot ETFs take off. Are you prepared for the volatility?
Tags
Ethereum ETF